Been looking through the old posts and see quite a bit of discussion about rust problems on MK2 cars particularly on the cills and rear wheel arches. Now panicking as even 2003 cars have had these problems. What do I need to check for and what maintenance steps do I need to take to ensure that these rust problems are prevented? I;ve seen discussion on drain holes. Not a clue where to start though so any help would be appreciated.

I suggest Tech Day in Callander where you can be pointed to the bits that need watched eg drain holes...and get advice about Dinitrol/Waxoil application.
Tech Day:: Sun 25th Nov 2007 Meeting Point : Stirling Services Departure Time : 10:45: A chance to prepare the car for winter. If you cannot see any rust , well and good...don't panic! I'm giving the wife's Mk2 a good drenching of Waxoil this weekend anyway. Her's is a year older than your car, corrosion free so far.
"UK" car, or an Import? Ironically, imports have a reputation for having better resistance than "home" cars.
My Mk1 import is corrosion free bar the usual surface crumble on wishbones & other sundry chassis bits.
The price is a grubby engine bay due to factory wax...which is how it will stay.